Morning journal and courier., 1887-01-29

The Best Since the Naugatuck Rail- |
road Chance. |
The proposition made by the Housatonic |
Valley railroad company to the city of New
Haven to buy the city's interest in the Derby
railroad for $175, 900 is of the chief topics
of the hour among our citizens, particularly
among capitalists, business men and others
who are somewhat conversant with the Derby
and the city's connection with it. A tour
about the center of town yesterday resulted
in the following interviews and expressions
of opinion on the subject:
Mr.. H. a. Bunnell of Bunnell & Scranton,
brokers' was found in his Office and said re-
garding the matter: 1t would be great ben
eft to the city of New Haven to have the
Housatonic Valley railroad built, as business
which used to come to New Haven fifteen
years ago from towns along the Housatonic
valley has now entirely left us and gone to
Bridgeport and New York, for the reason
that our merchants would have to pay freight
over two roads; and business is done at such
small percentage of profit owing to sharp
competition in the different lines of trade
that it has worked greatly to the disadvan-
tage of merchants of New Haven in not hav-
ing any direct communication with the Hous-
atomic valley and beyond. In my opinion
there has not occurred anything in the
last few years that would tend to build up
the interests of New Haven so much as the
building of the proposed extension from Der
by to Sandy Hook. This is the first time
that any outside capital has been willing to
take the responsibility of building the road
without asking any capital from the city of
New Haven. The proposition which the
Housatonic Valley company makes through
its attorney, Mr.. Tyler, to the city of New
l consider very fair, as without this xten-
sion the New Haven & Derby railroad stock
! will never be Of any value as dividend
payer, but with this extension
built and plenty of capital back of it the
road will no doubt have q profitable
switchings of the Derby railroad, which have
been of great Inconvenience at times to the
citizens of New Haven, will, no doubt, be
vremedied in a measure if this sale of the citys
Interest to the Housatonic Valley company
is made by either changing the grades or
tunnelingtso that the present arrangement
will be obviated, but as it will cost a great
deal of money to do this, the Derby railroad
itself will never be in condition, in the
memory of anyone living, to change the
grade without assistance from the city of
New Haven. Very likely the Consolidated !
of New Ravens interests in the Derby road |
than the Housatonic Valley, but I would |
consider it to be much better for the mercan-
camille community of this city to have an in |
dependent outlet as we have now than to |
have the merchants of New Haven tied up
should buy it, we could not expect they |
would build this extension. When |
the Derby road was started /
the citizens of New Haven subscribed over |
5000, 200 for the stock, paying par for it,
without any expectation of its ever being |
worth anything except as benefit to be de-
rived from the business from the Nsugatuck
valley. The city of New Haven alse at the
same time subscribed $500, 900 for the stock
of the road, which it now holds. The nomi-
nal price of the stock for the last year has |
been from $40 to $50 share and the stock |
of the Derby without any further connec-
tions cannot be expected to be worth any
more than it is selling at to-day, but with a
new territory opened up the future is full of /
promise to the stockholders of the
road and the city of New Haven.
The stock of the road is held mostly in
over 20 shares apiece. The present capital
stock of the Derby is $446, 600. The funded
debt is $500, 900 first mortgage z per ce-t.
bonds due in 1888; 1926, 900 second mort
gage bonds due in 1899, which are guaran-
teed by the city of New Haven.
Said Mr.. Stephen B. Butler, firm of Butler
& Tyler, wholesale shoe merchants, success
sors to the late ex-Mayor Morris Tyler: We
are heartily in favor of the project and think
upon full consideration and knowledge of
the facts in the case that it would be wise
for the city to accept the Housatonic Valley /
railroad company's offer. The road proposed
would open q section of the State which our
merchants have been unable to get at on &C.
count of the lack of freight accommodations
The city would be large gamer by having |
the proposed connection with the north
western part of the State. do not think
of anything since New Haven had the
opportunity of becoming the southern ter
minus of the Naugatuck railroad more
promising for the advantage of the city's
business prosperity than this opportunity
now proffered our city. The section of
country which would be opened by such a
its goods cheaper now from Boston or New
York than it csn from New Haven. And
why? Simply because of our lack of direct
railroad connection with it. Such road as
this would open big market for
our merchants, which they are now deprived
Of. Mr.. Tyler, of the firm, coincided with
these views warmly and said it would be an
excellent thing for New Haven to have the
road when completed. Mr.. Butler also add
I'D that as he understood the proposition of
The railroad company they agreed to pay off
she first mortgage (of $500, 00O) and secure
he city against being obliged to pay any
more interest money on the second mort
gage.
Mr.. Charles E. Hart, the marketman on
State street, and Mr.. r. r. Hopkins, jr.,
1
proposition made it by the railroad company. |
Mr.. George 81. Ford thought it good op-
oortunity for the city, as far as he had time
70 lock into the matter. He would say on
general principles that the offer struck him |
as good chance to open up a
arge section of country to the New Haven
merchants. He was averse to the city's en-
;ering into railroad building, but if private
parties came forward to put through this
project which would enable the city and !
he many small stockholders Of the Derby to
,ealize handsomely on their investment, why
,he offer was good one.
Edward Bryan, of Yale, Bryan & Co.,
aid: "This proposition is perfectly fair and
8 one that the city should consider and act {
upon. The road would be great !
benefit to wholesale dealers here certainly,
md think to retail dealers also. 1t will | &
which we ale practically barred out now.
The road should be built to Sandy Hook s
md the sooner tho better, and of !
curse it would be for the interests. of all | !
oneerned that the road should be under
ne management. Since the Derby road
as largely increased, and we should make
he same gains in the Housatonic valley if we
ot read there. hope they will get at it I
t once, and the sooner the better"
Such prominent wholesale firms as ]. D.
Jewell & Co., Stoddard, Kimberly & Co., s. !
/
theirs and such well known citizens as Hoad- I
sy B. Ives, president of the National Savings
ank, and ex-Alderman G. E. Graves hearth {
= approve of the city's accepting the offer in |
uestion.
Mr.. George Wykes, jr., representing w. T. Q
latch & Sons, bankers, said he had heard a
lumber Of opinions on the subject from !
prominent gentlemen all in favor of the pro- +
ect.
James D. Dewell, of J. D. Dswell & Co., 6
aid: 'I think the proposition is certainly - f
cry fair one. think the city had better 1
i've up its entire interest in the Derby for i
othing rather than to have this extension t
ot built. The city could well afford to can L
Of its claim on the Derby for the benefit to G
be city from the extension of the road. | 6
t is not to the present alone that we must a
ook, but to the future. The fact is, New d
Taven is fast being frozen out in one way or L
mother, so that we are no longer the COM r
citing point that we were. All we ask ia TO
ave equal facilities with other towns. ii
fsSinca the CanaI road fall inkH thA c0ntro1 +